John S Kiernan, Managing Editor
The closing date on a credit card is the last day of a credit card’s billing cycle and when the credit card statement gets compiled for the account. The statement will typically “close” at midnight, so the day before the closing date is likely the last day that new charges can be added to that month’s statement. The closing date is also when a credit card issuer calculates interest charges from the billing cycle, if the cardholder began the billing cycle with a balance.
To be clear, a credit card’s closing date is not the due date. But it can be an important date if you’re looking to lower your credit utilization. That’s because the closing date is when many card issuers report to credit bureaus. So the balance on the statement is what gets reported to credit bureaus. That means if you pay your bill on the due date – weeks after the statement is compiled – your credit report won’t reflect the dent you made in your balance with the payment.
You can take advantage of this by paying your balance in full before the closing date, rather than on the due date. That way, when the card issuer reports your balance info to credit bureaus, you’ll have a zero balance, which will likely improve your credit score.
The closing date for a credit card is listed on the monthly account statement, under “Opening/Closing Date” in the account summary or at the top of the statement.
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